MD
Maryland House Bill HB414

Maryland 2022 Regular Session

Maryland House Bill HB414 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb0414*
66
77 HOUSE BILL 414
88 C8 2lr0142
99 CF 2lr0141
1010 By: The Speaker (By Request – Administration) and Delegates Anderton, Boteler,
1111 Buckel, Chisholm, Griffith, Hartman, Hornberger, Howard, Jacobs, Kipke,
1212 Krebs, Long, McComas, McKay, Metzgar, Morgan, Munoz, Novotny, Otto,
1313 Reilly, Saab, Szeliga, Thiam, and Wivell
1414 Introduced and read first time: January 19, 2022
1515 Assigned to: Ways and Means
1616
1717 A BILL ENTITLED
1818
1919 AN ACT concerning 1
2020
2121 Economic Development – Project Restore Program and Fund 2
2222
2323 FOR the purpose of establishing the Project Restore Program within the Department of 3
2424 Housing and Community Development to provide financial incentives for small 4
2525 businesses and commercial developers to revitalize certain vacant retail and 5
2626 commercial space; authorizing the award of certain grants to certain businesses and 6
2727 developers under certain circumstances; establishing the Project Restore Fund as a 7
2828 special, nonlapsing fund in the Department; requiring interest earnings of the Fund 8
2929 to be credited to the Fund; and generally relating to the Project Restore Program and 9
3030 Fund. 10
3131
3232 BY repealing and reenacting, without amendments, 11
3333 Article – Economic Development 12
3434 Section 6–801(a) and (l) 13
3535 Annotated Code of Maryland 14
3636 (2018 Replacement Volume and 2021 Supplement) 15
3737
3838 BY adding to 16
3939 Article – Housing and Community Development 17
4040 Section 6–1101 and 6–1102 to be under the new subtitle “Subtitle 11. Project Restore18
4141 Program and Fund” 19
4242 Annotated Code of Maryland 20
4343 (2019 Replacement Volume and 2021 Supplement) 21
4444
4545 BY repealing and reenacting, without amendments, 22
4646 Article – State Finance and Procurement 23
4747 Section 6–226(a)(2)(i) 24
4848 Annotated Code of Maryland 25 2 HOUSE BILL 414
4949
5050
5151 (2021 Replacement Volume) 1
5252
5353 BY repealing and reenacting, with amendments, 2
5454 Article – State Finance and Procurement 3
5555 Section 6–226(a)(2)(ii)144. and 145. 4
5656 Annotated Code of Maryland 5
5757 (2021 Replacement Volume) 6
5858
5959 BY adding to 7
6060 Article – State Finance and Procurement 8
6161 Section 6–226(a)(2)(ii)146. 9
6262 Annotated Code of Maryland 10
6363 (2021 Replacement Volume) 11
6464
6565 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
6666 That the Laws of Maryland read as follows: 13
6767
6868 Article – Economic Development 14
6969
7070 6–801. 15
7171
7272 (a) In this subtitle the following words have the meanings indicated. 16
7373
7474 (l) “Tier I area” means: 17
7575
7676 (1) a Tier I county, as defined in § 1–101 of this article; 18
7777
7878 (2) a county designated by the Department that is not a county described 19
7979 in item (1) of this subsection, not to exceed three counties; or 20
8080
8181 (3) an opportunity zone. 21
8282
8383 Article – Housing and Community Development 22
8484
8585 SUBTITLE 11. PROJECT RESTORE PROGRAM AND FUND. 23
8686
8787 6–1101. 24
8888
8989 (A) IN THIS SECTION , “PROGRAM” MEANS THE PROJECT RESTORE 25
9090 PROGRAM. 26
9191
9292 (B) THERE IS A PROJECT RESTORE PROGRAM IN THE DEPARTMENT . 27
9393
9494 (C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL 28
9595 INCENTIVES FOR SMALL BUSINESSES AND COMME RCIAL DEVELOPERS TO 29
9696 REVITALIZE VACANT RE TAIL AND COMMERCIAL SPACE. 30 HOUSE BILL 414 3
9797
9898
9999
100100 (D) EXPENDITURES FOR THE PROGRAM MAY BE MADE O NLY IN 1
101101 ACCORDANCE WITH THE STATE BUDGET . 2
102102
103103 (E) SUBJECT TO THE AVAILA BILITY OF FUNDING AND IN ACCORDANCE WI TH 3
104104 CRITERIA ESTABLISHED BY THE DEPARTMENT , THE PROGRAM SHALL PROVIDE 4
105105 RENTAL GRANTS AND BU SINESS OPERATION GRA NTS TO ELIGIBLE BUSI NESSES. 5
106106
107107 (F) (1) IN ORDER TO BE ELIGIB LE FOR THE PROGRAM, A BUSINESS SHALL 6
108108 OPEN OR EXPAND IN A RETAIL OR COMMERCIAL PROPER TY THAT HAS BEEN VAC ANT 7
109109 FOR AT LEAST 6 CONTINUOUS MONTHS BE FORE THE LATER OF TH E DATE THAT THE 8
110110 BUSINESS: 9
111111
112112 (I) OBTAINED AN OWNERSHI P INTEREST IN THE PR OPERTY; OR 10
113113
114114 (II) BEGAN CONSTRUCTION O R RENOVATION OF THE 11
115115 PROPERTY. 12
116116
117117 (2) A BUSINESS THAT TOOK AN OW NERSHIP INTEREST IN A PROPERTY 13
118118 OR BEGAN CONSTRUCTIO N OR RENOVATION OF A PROPERTY BEFORE JULY 1, 2021, 14
119119 IS NOT ELIGIBLE FOR THE PROGRAM WITH RESPECT TO THAT PROPERTY . 15
120120
121121 (3) THE DEPARTMENT MAY EXCLUD E CERTAIN TYPES OF 16
122122 BUSINESSES FROM ELI GIBILITY FOR THE PROGRAM. 17
123123
124124 (G) (1) THE PROGRAM MAY AWARD REN TAL GRANTS ONLY TO A N 18
125125 ELIGIBLE BUSINESS WI TH 50 OR FEWER FULL –TIME EQUIVALENT EMPL OYEES. 19
126126
127127 (2) AN ELIGIBLE BUSINESS MAY USE RENTAL GRANT FUNDS 20
128128 AWARDED UNDER THIS S UBSECTION TO SUPPORT THE PAYMENT OF RENT , 21
129129 MORTGAGE , OR PROPERTY TAXES BA SED ON WHETHER THE B USINESS WILL LEASE , 22
130130 WILL PURCHASE , OR ALREADY OWNS THE VACANT PROPERTY THAT THE BUSINESS 23
131131 WILL OCCUPY. 24
132132
133133 (3) THE PROGRAM MAY AWARD AN ELIGIBLE BUSINESS A RENTAL 25
134134 GRANT NOT EXCEEDING $2,500 FOR EACH MONTH FOR A PERIOD NOT EXCEEDING 26
135135 12 MONTHS. 27
136136
137137 (H) (1) SUBJECT TO THE LIMITA TIONS OF THIS SUBSEC TION, THE 28
138138 PROGRAM MAY AWARD A B USINESS OPERATIONS G RANT TO PROVIDE SALE S AND 29
139139 USE TAX REBATES TO A N ELIGIBLE BUSINESS FOR THE AMOUNT OF SA LES AND USE 30
140140 TAX COLLECTED BY THE BUS INESS AND PAID TO TH E STATE. 31
141141 4 HOUSE BILL 414
142142
143143
144144 (2) (I) AN ELIGIBLE BUSINESS MAY USE A BUSINESS O PERATIONS 1
145145 GRANT FOR ACTIVITIES AND COSTS RELATED TO SUSTAINING AND GROWI NG THE 2
146146 BUSINESS, INCLUDING STAFF COST S, CAPITAL IMPROVEMENTS , MARKETING, 3
147147 INVENTORY, SUPPLIES, UTILITIES, AND TRAINING. 4
148148
149149 (II) AN ELIGIBLE BUSINESS MAY NOT USE A BUSINE SS 5
150150 OPERATIONS GRANT FOR THE PAYMENT OF EXECU TIVE SALARIES OR EXE CUTIVE 6
151151 BONUSES. 7
152152
153153 (3) A BUSINESS OPERATIONS GRANT MAY NOT EXCEED $250,000 8
154154 DURING A 12–MONTH PERIOD . 9
155155
156156 (4) THE PROGRAM MAY AWARD A B USINESS OPERATIONS G RANT FOR: 10
157157
158158 (I) A PERIOD NOT EXCEEDI NG 2 YEARS FOR A BUSINESS THAT 11
159159 IS LOCATED IN: 12
160160
161161 1. A TIER I AREA, AS DEFINED IN § 6–801 OF THE 13
162162 ECONOMIC DEVELOPMENT ARTICLE; OR 14
163163
164164 2. A LOCATION DESIGNATE D BY THE DEPARTMENT AS A 15
165165 MAIN STREET MARYLAND COMMUNITY; OR 16
166166
167167 (II) A PERIOD NOT EXCEEDI NG 1 YEAR FOR A BUSINESS THAT IS 17
168168 NOT LOCATED IN AN AR EA DESCRIBED UNDER I TEM (I) OF THIS PARAGRAPH . 18
169169
170170 (I) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THE 19
171171 PROGRAM. 20
172172
173173 6–1102. 21
174174
175175 (A) IN THIS SECTION, “FUND” MEANS THE PROJECT RESTORE FUND. 22
176176
177177 (B) THERE IS A PROJECT RESTORE FUND. 23
178178
179179 (C) THE PURPOSE OF THE FUND IS TO FUND RENTA L GRANTS AND 24
180180 BUSINESS OPERATIONS GRANTS AWARDED UNDER THE PROJECT RESTORE 25
181181 PROGRAM IN ACCORDANCE WITH § 6–1101 OF THIS SUBTITLE. 26
182182
183183 (D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 27
184184
185185 (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 28
186186 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 29 HOUSE BILL 414 5
187187
188188
189189
190190 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATE LY, 1
191191 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2
192192
193193 (F) THE FUND CONSISTS OF : 3
194194
195195 (1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 4
196196
197197 (2) INTEREST EARNINGS ; AND 5
198198
199199 (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 6
200200 THE BENEFIT OF THE FUND. 7
201201
202202 (G) THE FUND MAY BE USED ONLY : 8
203203
204204 (1) FOR THE PURPOSES DES CRIBED UNDER SUBSECT ION (C) OF THIS 9
205205 SECTION; AND 10
206206
207207 (2) TO PAY THE COSTS NEC ESSARY TO ADMINISTER THE FUND. 11
208208
209209 (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 12
210210 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 13
211211
212212 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 14
213213 THE FUND. 15
214214
215215 (I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 16
216216 WITH THE STATE BUDGET . 17
217217
218218 (J) MONEY EXPENDED FROM T HE FUND IS SUPPLEMENTAL TO AND IS NOT 18
219219 INTENDED TO TAKE THE PLACE OF FUNDING THA T OTHERWISE WOULD BE 19
220220 APPROPRIATED FOR BUS INESS–RELATED GRANTS . 20
221221
222222 Article – State Finance and Procurement 21
223223
224224 6–226. 22
225225
226226 (a) (2) (i) Notwithstanding any other provision of law, and unless 23
227227 inconsistent with a federal law, grant agreement, or other federal requirement or with the 24
228228 terms of a gift or settlement agreement, net interest on all State money allocated by the 25
229229 State Treasurer under this section to special funds or accounts, and otherwise entitled to 26
230230 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 27
231231 Fund of the State. 28
232232 6 HOUSE BILL 414
233233
234234
235235 (ii) The provisions of subparagraph (i) of this paragraph do not apply 1
236236 to the following funds: 2
237237
238238 144. the Health Equity Resource Community Reserve Fund; 3
239239 [and] 4
240240
241241 145. the Access to Counsel in Evictions Special Fund; AND 5
242242
243243 146. THE PROJECT RESTORE FUND. 6
244244
245245 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
246246 October 1, 2022. 8
247247